US stocks fell sharply today amid uncertainty over the country’s trade war truce with China.

The Dow Jones tumbled more than 800 points as initial enthusiasm about the trade ceasefire between President Trump and President Xi began to wane.

On Monday the Dow saw large gains after Trump agreed to delay a rise in tariffs on Chinese imports. But the jump was short lived, as investors noted the lack of progress with the planned truce.

“President Xi and I want this deal to happen, and it probably will,” Trump wrote in a tweet. “But if not remember I am a Tariff Man.”

Connor Campbell, financial analyst at Spreadex, said: “Doubts remain not only over the long-term relationship between the two superpowers, but the short-term implementation of the ceasefire."

In addition to trade concerns, the Treasury yield curve continued to flatten, indicating low growth and sparking recession fears.

"Some nervous types will be concerned about the probability of a US recession, as the latest focus on the yield curve prompts fears of further economic weakness," said Chris Beauchamp, chief market analyst at IG.

"But with an average of 14 months between inversion and recession, it might not be time to dump equities just yet."

US markets are due to close tomorrow to honour former president George H.W.Bush, who died last week. Analysts say the closure will offer some respite to US stocks.